Shares of IRB Infrastructure Developers climbed nearly 8 percent on Monday, January 2 after its Special Purpose Vehicle (SPV), Udaipur Tollway Ltd. (UTL), raised ₹700 crore through an issue of non-convertible debentures (NCDs) on a private placement basis, according to PTI.
The stock opened at a price of Rs. 293 per share and rallied during the early trading session to touch an intraday high of Rs. 314 per share. At 12.05 p.m, the stock was trading at ₹312.85 up by 7.56 percent on the NSE.
The stock touched a 52-week-high of Rs. 329.40 on December 14, 2022 and a 52-week-low of Rs. 178.90 on June 20, 2022, indicating that at the current level, the stock is trading at nearly 75 percent above its 52-week low and just 5 percent below its 52 week high.
IRB Infra has shown a positive growth of nearly 14 percent in the last one month. Moreover, the stock has surged about 31 percent year-to-date, while in the last three years, it has given a multi-bagger return of 450 percent.
On Thursday, December 29, Udaipur Tollway Limited (UTL), the Special Purpose Vehicle of IRB Infrastructure Developers allotted unlisted, rated, redeemable non-convertible debentures aggregating to ₹700 crore on a private placement basis to eligible investors.
The proceeds from the NCDs from refinancing would be utilized for part takeout financing of the Existing Project Loans obtained and provide significant savings of over ₹10 crore annually at a revised interest cost of about 8.9 percent, the official filing stated.
Earlier in the quarter, it had re-financed its two SPVs under the private InvIT arm (through private placement of listed NCDs), viz Solapur Yedeshi Tollway Limited and Yedeshi Aurangabad Tollway Limited.
With a focus on enhancing returns to our investors, the company has been exploring avenues to refinance its completed projects. Part refinancing exercise conducted for our Udaipur Shamlaji BOT asset in Rajasthan is the next spoke of this strategy, the company informed.
Domestic brokerage house, Kotak Securities has a 'buy' rating on IRB Infrastructure Developers with a target price of ₹340, suggesting an upside of 18 percent in the stock.
IRB Infrastructure Developers Ltd., established in 1998, is a mid-cap company with a market valuation of Rs. 12,926.48 crores engaged in the infrastructure industry. The company is involved in engineering, procurement and construction (EPC), and operation and maintenance across all its businesses. The company manages and operates approximately 12,975 lane kilometers across 23 assets.
According to a MintGenie poll, an average of 8 analysts have a ‘buy’ call on the stock.
